July 2022

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Commercial vs Residential Real Estate Investing

Which one would you pick?

Real estate investing may be a great wealth creator since it provides both prospective income flow and appreciation while typically posing a low amount of risk. While some kinds of real estate investing are riskier than others (for example, fix-and-flips), it is typically a secure and reliable asset class to invest in.

 What is Commercial and Residential Real Estate?

Commercial real estate is an umbrella term for significant market segments such as retail, office, and industrial assets. Apartments, childcare facilities, condos, movie theaters, parking lots, industrial floors, warehouses, and retail spaces held by names such as Big Bazaar, Croma, and others are among the assets in this category.

In brief, commercial real estate is any property that may be utilized exclusively for business reasons (CRE). There are now multi-use spaces that may be used as both business and residential places.

Residential real estate comprises housing that is usually rented rather than owned. That may appear overly simplistic, yet it is exactly the same. Residential real estate refers to any property built purely for the purpose of dwelling (RRE). They can also be used in multi-purpose rooms, as discussed in the previous section.

The main distinction between RRE and CRE is how they are rented/leased, as well as the regulations involved. Because those features change, the aspect of investing in one of them differs as well, yet the essential idea stays the same.

What is the difference between investing in Commercial VS Residential real estate?

Does it make more sense to invest in commercial real estate over residential real estate? The answer to this question does not have to be yes or no, but it is worth considering both possibilities. It can work out well if you are open and honest about your goals, how much cash you need vs how much investment income you want, and your timetable for profit generation.

As a rule of thumb, real estate delivers high profits only when owned for a lengthy period of time: two years or more. That is also true for RRE and CRE. As an investor, or rather, a retail investor, RRE may appear to be easier to enter than CRE, and the former may appear to provide more options for portfolio customization. To learn more about what each investment option has to offer, let’s look at the key distinctions between them and see which one best fits your needs.

There are many types of real estate investments like flipping, tax liens, multi family homes, trailer parks, empty land, etc. But for this article we will cover two choices: commercial and residential real estate. The majority of people will fight for and support one side. The aims and risks involved, like with any investment channel, are the deciding elements in determining the efficacy of investing in commercial real estate vs residential real estate. Let’s go through some additional specifics.

Regarding Residential Real Estate (RRE):

  1. An investor must often acquire a property and own the physical asset on their own. They can bring in family members as co-signers, but the investment relationship should end there.
  2. When looking at residential real estate, you may miss out on engaging with seasoned investors. In most situations, people build their own homes and rent them out.
  3. Another unusual way to become an investor is to sublease a property for a set amount of time. As a result, the investor only owns the property for a term of 5 years or more. Since there is no purchase involved, if the investment does not work out well at the conclusion of the lease period, the investor may easily move on to another asset.
  4. In any case, the uncertainty of the renters and the relatively short rental agreements make investment in RRE less profitable. However, because there is less paperwork and money required, it is easier to get started.

Regarding Commercial Real Estate (CRE):

  1. CRE is more difficult for an individual investor to enter. It requires the understanding of rent rolls and market analysis. 
  2. In most situations, the initial investment is rather large for a retail investor, and one must have a strong grasp of market demand and supply in order to appropriately analyze the rewards of this investment.
  3. A property investment manager, on the other hand, can be useful in this situation. They can handle all of the paperwork, leaving you to decide whether an investment choice is best for you.
  4. With the addition of REITs and fractional ownership to the real estate investment scenario, it is now simpler for a retail investor to enter into CRE investing.
  5. Both solutions minimize the initial investment size and provide simple investing methods for long-term investments.

How to Choose Between Commercial VS Residential Real Estate Investment?

As previously said, investing is influenced by two primary variables from the investor’s perspective: the risk involved and the goals in mind. Investing in real estate also carries the risk of a probable loss of capital. If a property does not have enough tenants over the investment term, the profits will not be sufficient to justify the investment.

As previously said, investing is influenced by two primary variables from the investor’s perspective: the risk involved and the goals in mind. Investing in real estate also carries the risk of a probable loss of capital. If a property does not have enough tenants over the investment term, the profits will not be sufficient to justify the investment.


  • Commercial real estate, in general, is less hazardous from this standpoint since it nearly always has a consistent cash flow due to the rock-solid lease periods in place for tenants. Purchasing a residential property, on the other hand, might be fairly dangerous due to the inconsistent income flow and the possibility of abrupt swings in market demand.

Residential real estate was the most impacted in the real estate sector during the pandemic’s inception and spread. Not only that, but any drop in economic activity in any sector will first affect residential tenants, who will always want to cut their losses in the absence of a solid, long-term lease agreement.

  • If you know a market well and have local relationships, investing in RRE for a shorter length of time may make sense. Long-term objectives of at least five years or more are recommended for CRE. As a result, the profits created make more sense, and passive income actually frees up your time to consider alternative investment options.

The benefit of commercial property is that rents are often more stable and lease agreements are more specific and long-term, which means tenants are almost always available. Commercial buildings often generate higher gross revenue with less effort. Residential properties provide superior returns in most regions of the nation, and they do not necessitate a large outlay of cash because there is no mortgage and renters do not suffer interest fees.

At the end of the day, it pays to investigate all of your possibilities before committing to an investment in CRE or RRE.

What is the biggest obstacle to investing in real estate?

Whether commercial or residential, it is not everyone’s cup of tea. It takes a good sum of money and knowledge when it comes to investing in real estate and if you are not careful about it, you might lose it all in the business. Never forget that money brings money. So if you don’t have money, you can always find investors for your next real estate opportunity.  If you invest little, you will profit little, but if your investment is big, there is a higher chance of making a good profit from it. Check out our free guide “How to Raise Capital in Real Estate” for more info on how to get started without any money.

One of the main obstacles I have personally experienced is gaining knowledge and learning to curve it. If you have knowledge about something and do not know how to use it then it will all go in vain. These are some of the biggest challenges. You have to be very careful when making any decisions.  Remember, “little drops of water make a mighty ocean”.

Start your Investment Journey Today…

Almost all of us have been through times where we had enough money but could not save it from wasting away. This happens because of poor management of finance. Trust me when I say it is never too late to learn something new.

To help you with financial management, you can invest in our “Financial Accelerator Tool”. This is a lifetime investment in yourself. With the help of this course, you can manage your own finances without the help of an expert. You will learn about all the necessary steps you may need to know about investing your finances. To find out more about the course, click here. However, to book yourself a seat on 1 on 1, Click here.

Investing and managing finances seems intimidating, but once you get a hold of it, do your own research, and be precise about what you want, you can get whatever you want.


  1. https://learn.roofstock.com/blog/commercial-vs-residential-real-estate#:~:text=Residential%20real%20estate%20includes%20small,performance%20through%20all%20economic%20cycles
  1. https://www.livemint.com/money/residential-vs-commercial-properties-where-to-invest-in-2022-11643508535413.html 
  1. https://www.fortunebuilders.com/commercial-vs-residential-real-estate/ 
  1. https://www.forbes.com/advisor/in/investing/things-to-know-before-investing-in-commercial-real-estate/ 
  1. https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html
  1. https://www.investopedia.com/terms/c/commercialrealestate.asp 
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  1. https://www.withvincent.com/guides/residential-real-estate 
  1. https://www.forbes.com/advisor/in/investing/commercial-vs-residential-real-estate-investing/
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3 Major Benefits of Using a Credit Card

3 major benefits of using a credit card!


Credit Cards

When was the last time you heard of the term “credit card” and associated it with something negative? high-interest rates, bills you may never be able to pay off, credit cards have a very bad stigma surrounding them. What if we told you that you could use credit cards to your advantage if only you learned to utilize them wisely? 

While many think that the plastic rectangle is dangerous, it can be a tool for good.

How Credit Cards Work?

Credit runs the world, and great credit can create much leverage for someone. By making regular monthly payments, consumers can quickly work to rebuild or establish great credit. Also, many modern credit cards, such as travel cards or reward credit cards, come with cashback incentives, allowing you to reclaim some of that spent money. Whatever your credit situation, Residual Education will guide you through this process.

Major benefits of credit cards

The benefits of a typical credit card depend on the credit card company/bank or how the credit card is used. Three of the major benefits are:

  1. Cashback
  2. Reward Points
  3. Deferred Monthly Interest

1. Cashback

Probably the most popular benefit any credit card can offer is cashback. Some airline companies offer something similar in terms of air miles, but the situation is the same, you spend money, and they’ll give you some back. 

There are different cashback programs for different buyers. Some offer a flat percentage back, while others provide different rates based on where you spend. 

By paying off your bill EVERY month before the interest accumulates, you can make money by spending it!

2. Reward Points

By far, the most attractive feature of a credit card is earning rewards every time you purchase something using a credit card.

Almost all credit card companies give points on purchases through credit cards, depending upon the purchase amount. Reward points earned this way can be redeemed on various online shopping websites.

For example, you can use your credit card reward points to get airline tickets, pay for a new TV, book a hotel, or even donate them.

3. Deferred Monthly Interest

While some credit cards are designed to offer reward points or cashback, others provide debt reconsolidation. It is accomplished by postponing monthly interest for a specified time and not charging a fee on transfer balances.

In other words, there are credit cards known as debt transfer cards that will not charge you interest or fees as long as you make the minimum payment each month.

If you have three credit cards with significant debt and even higher interest rates, you can consolidate them all onto a single card with a particular no-interest term.

This no-interest period varies for each credit card, but the average is 12 to 18 months no interest cards.

While it can help you leverage and pay off your other high-interest credit cards, you must pay the entire bill within 12 to 18 months, or you will be charged extremely high-interest rates.

Nonetheless, these balance transfer cards can SAVE you money on interest while repaying a debt you were already paying!

How to get these benefits?

To get maximum benefits out of your credit card, you must first learn how to use your credit card the right way. You may also need to check what specific benefits your credit card provides. You can reach out to the credit card company or bank to find out about these benefits.

  1. 1. Make full payments on time: Paying off your credit card bills on time can help you avoid paying hefty interest rates. 
  3. 2. Buy what you can afford easily: Always buy the things you can also afford with cash. This way, you can easily manage your debt-to-income ratio.
  5. 3. Never exceed your credit limit: You should always try to stay well below the credit limit of your credit card. This will positively influence your credit score and help you secure better deals with your credit card.


The Financial Accelerator Course contains all the resources that you would need to manage your budget and maintain your debt according to your monthly income. 

This course is equipped with a robust budget management tool where you can enter your monthly income and expenses and easily plan your annual budget. It will show you where extra money may be hidden and what you can do to get it back so your money can start working for you.

Managing finances can be overwhelming, but you don’t have to face it alone. Through Residual Education’s Financial Accelerator Course, you will become much more comfortable with your money, create peace of mind, get into the investment journey, and, most importantly, create the financial future you desire!

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The Importance of Personal Finance

Do you know that more than 64% of adults cite money as being one of the major causes of stress in their life? To be honest, that statistic isn’t that unrealistic, especially when we take the current global recession into consideration. Making money and getting ahead in life have become two very different things. And bridging the gap between them is personal finance. 

Simply put, personal finance is all about managing the money matters of your home. This includes budgeting, tracking, and analyzing the income, spending, savings, investments, and safety expenditures- both short and long-term, of your personal self and family.  

Today, we’ll take a detailed look at why personal finance is important and how you can better educate yourself in this regard.  

Why is Personal Finance Important? 

Better Mental Health 

Making and managing money can be stressful at best and a cause for depression at worst. So, the best way to get ahead of this issue is by giving your personal finances the attention it deserves. By properly budgeting your expenses, you’ll have a clearer sense of where your money is going, which in turn will result in peace of mind and help alleviate all that anxiety about money matters.  

A Secure Future 

From inflation to the recession, there’s a lot of uncertainty that encircles our global economy. A single negative economic indicator can mean the loss of your source of livelihood. Well, your mortgage payments and credit card bills won’t care whether you have a job or not. 

Fortunately, personal finance will help you maintain your future expenditures by creative independent sources of income and making your spending patterns more transparent.  

Freedom of Time 

We can all agree that money management is an arduous task. But the rewards are unimaginable. By knowing where your money is going and having a financial organization you have the ability to create true freedom.

This means that you place enough attention to your personal finances that your money is being allocated in the right places and most importantly it is growing and working for you. Organizing your finances will give you the freedom of time to do what you love to do because you have allocated your money so it is working for you.  

Final Thoughts 

Thinking about the future from a financial perspective can be overwhelming. We get it! But only by taking action can you get true financial freedom. If you’d like to know more about personal finances, and building generational wealth, consider taking one of our financial education courses on our Residual Education online education platform. 

One of our coaches, Mei Jing is an industry expert whose Financial Accelerator Excel is the talk of the town these days. For less than a price of a book, this personal finance course will help you manage your money, analyze your spending patterns, create financial mental programming, and chart your path to financial freedom in real-time.

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